Imagine a world where every payment, no matter the size, destination or platform, spoke the same structured, data-rich language. That’s the promise of ISO 20022: a modern standard replacing decades-old, rigid financial message formats. It enables payment messages to carry more than just transaction amounts and account numbers. With ISO 20022, you can embed invoice references, purchase order numbers, tax IDs and even full remittance details – such as who sent the funds and why – all in a machine-readable, structured format.
This transformation isn’t just technical — it’s strategic. For financial institutions and fintechs, ISO 20022 represents a major opportunity to streamline operations, enhance customer experiences and prepare for an increasingly data-driven financial ecosystem.
Why is ISO 20022 in the spotlight now?
Canada is already embracing the future. With the second release of Lynx, the country’s high-value payment system began finalizing wire payments using ISO 20022 formats. That shift is now live and actively reshaping how large-value payments are processed.
Globally, the clock is ticking. SWIFT – the global network used to send cross-border payments – has set November 22, 2025, as the final date to retire its legacy MT message formats for transactions between financial institutions. From that point forward, ISO 20022 will become the standard for international transactions, setting the stage for smoother, faster and more consistent international payments.
And this is just the beginning. Upcoming enhancements to Canada’s Automated Funds Transfer (AFT) and the introduction of Real-Time Rail (RTR) — the country’s next-generation, real-time payment system — will also adopt ISO 20022. That means structured messaging will touch every part of the payments landscape: from business payroll files and insurance disbursements to e-commerce refunds and everyday person-to-person transactions.
What richer data means for you and your customers
The shift to ISO 20022 unlocks new possibilities across compliance, product innovation and operational efficiency:
- Fewer errors, faster reconciliation
Structured data fields reduce manual entry errors, minimize payment mismatches and enable accounting systems to automatically connect payments to outstanding invoices. - Enhanced compliance and fraud monitoring
Richer data – such as who sent the payment, what it’s for and related invoice or tax details – support improved sanctions screening and anti-money laundering (AML) analytics. - New revenue-generating services
With detailed information embedded directly in the payment, FIs can develop value-added services like automated invoice reconciliation, integrated payables, supply chain financing and more intelligent lending programs. - Global plug-and-play compatibility
ISO 20022 offers a common language for all participants in the payment ecosystem — making it easier to integrate with correspondent banks, fintech partners, ERP providers and emerging open-banking APIs.
For credit unions and challenger banks, the real payoff lies in experience and agility: faster payment processing, richer insights and lower back-office costs — all while delivering superior service to customers.
Leading the way in ISO 20022 adoption
Central 1 has been a leader in Canada’s ISO 20022 evolution. In November 2023 – two years ahead of Payments Canada’s deadline – we became one of the first Canadian providers to offer full ISO 20022 functionality for wire payments — giving you an early advantage in adapting to this critical industry shift.
Ready to start your ISO 20022 journey?
The future of payments is data-rich, real-time and globally connected. Central 1 can help you maximize the benefits of ISO 20022 now — whether you’re just getting started or scaling your capabilities.
